Open Innovation (OI) models have been studied in many fields. However, the challenges and opportunities of a possible OI paradigm application in external auditing have been under-researched. Recent corporate scandals are currently triggering changes and improvements in the regulatory framework...

The auditor may provide numerous services to their clients covering audit and non-audit services (NAS). These services have been considered as a combination of services offering varying results for client firms. The mixed results reported by past studies in measuring the relation between NAS and...

We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation is costly. The optimal audit standard falls short of the first-best audit quality, and is increasing in the riskiness of firms and in the amount of funding they seek. The model...

This study investigated the effect of auditor's independence on the financial reporting quality of Parastatals in Lagos State, Nigeria. A survey was conducted to gather data on auditor's independence and a content analysis procedure was adopted to extract secondary data from the audited...

We examine whether the naming of partners provides a benefit to the public in the context of allowing researchers to empirically collect evidence on the economic importance of non-audit services (NAS) at the partner level. We provide evidence showing that auditor independence is impaired when...

This paper explores the practices of auditors in a non-Western cultural environment. Drawing on Alasdair MacIntyre's virtue ethics framework and narrative interviews with twenty Tunisian auditors, we investigate how auditors reconcile their duty to independence with the expectations of a kinship...

The auditor may provide numerous services to their clients covering audit and non-audit services (NAS). These services have been considered asa combination of services offering varying results for client firms. The mixed results reported by past studiesin measuring the relation between NAS and...

Auditors play a major role in corporate governance and capital markets. Ex ante, auditors facilitate firms' access to finance by fostering trust among public investors. Ex post, auditors can prevent misbehavior and financial fraud by corporate insiders. In order to fulfill these goals, however,...

We analyze the impact of cross-audits between companies and mutual funds on auditors' reporting decisions. We document that companies are more likely to receive favorable audit opinions when they appoint the same auditor as their mutual fund blockholders. In cross-sectional evidence consistent...

Engendering greater regulatory scrutiny and political costs, client publicity can expose auditors to higher risks. Using the changes in clients' publicity caused by their controlling owners' presence on the Hurun Rich List (rich listing) in China, we test the hypothesis that auditor conservatism...

In this paper we provide evidence on specific factors that could affect audit quality under mandatory rotation, using data from Korea where mandatory auditor rotation was put into effect in 2006. We find no evidence supporting the “Brillo pad effect” (the argument that departing auditors...

This study investigates if auditors who feel accountable to management (as opposed to the audit committee) are more susceptible to pro-client bias after using a disclosure checklist. We theorize that the use of a disclosure checklist, even though it is uninformative about the aggressiveness of...

This study aims to perform a systematic review of the scientific literature on the topic Independent Audit. The research method of this study was based on descriptive statistics, a sample of 32 full articles published in scientific journals national, and have been published in the period between...

I examine the effects of occupational licensing on the quality of certified public accountants (CPAs). I exploit the staggered adoption of the 150-hour rule, which increases the educational requirements for a CPA license. The analysis shows that the rule decreases the number of entrants into the...

We document an increase in auditors issuing going-concern opinions in Australia over a prolonged period since the Global Financial Crisis that is not fully explained by changes in client risk. Overall, our evidence is consistent with auditors reporting more conservatively with the increased...

The working environment of professional auditors can make a threat to independence. There are many studies in the world on this issue but the results are not the same due to differences in each country. By using the qualitative methodology in combination with quantitative data analysis through...

Auditor independence was a global concern of financial regulators in the 1990's. Some observers saw this in a positive light, a natural development. Adjusting auditor independence rules was a manifestation of global convergence in corporate governance structures. New rules, especially rules...

In many countries of the world the co-residence of young adults aged 25-34 with their parents is not uncommon and in some countries the savings rates of these age groups exceed those of the middle-aged contrary to the standard model of life-cycle savings. In this paper we examine the role of...

This paper attempts to investigate the effects of the prohibition of certain non-audit services on the independence of the auditor and based on personal in-depth interviews with the Big 4 auditing firms that are affiliated with local accounting firms in Bangladesh. The approach selected for this...

European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level...

I examine the effects of occupational licensing on the quality of Certified Public Accountants (CPAs). I exploit the staggered adoption of the 150-hour rule, which increased the educational requirements for a CPA license. My analysis shows that the rule reduces the number of entrants into the...

This paper examines the association between auditor's independence and financial analysts' forecast revisions in the specific case of goodwill impairment testing. Using a sample of 1,247 firm-year observations representing 177 firms listed on the CAC All-Tradable (the former SBF 250) over the...